ExxonMobil: No need to fear oil supply shortage

Warnings that there could be a shortage in exploitation of oil are overblown, the chief executive of ExxonMobil Rex Tillerson said on Wednesday, rebuking earlier comments from Saudi Arabia's energy minister Khalid al-Falih.

In his speech at the annual Oil and Money conference in London, al-Falih advised investors to support more project developments in order to prevent a possible crunch in crude supplies that could occur due to historically low prices. Tillerson, who spoke right after the Saudi official, said that it's difficult to see a "big price blow" hitting the industry and that the United States shale is a game changer in that regard, as it doesn't require as much investment and could be developed more quickly. He added that the commodity created an "enormous spare capacity" in the market, potentially challenging Saudi Arabia's traditional role as a so-called swing producer.

Remarks by the two prominent figures in the industry come as many oil companies decided to slash investment in new projects after a fall in crude prices raised concerns about the long-term effect on the market.